Closed-End Funds

Nuveen AMT-Free Quality Municipal Income Fund
(NYSE: NEA)

Prior to the market open on September 12th, 2016, the assets of the Nuveen Municipal Market Opportunity Fund, Inc. (NMO), Nuveen Premium Income Municipal Fund 2, Inc. (NPM) and Nuveen Performance Plus Municipal Fund, Inc. (NPP) were merged into the Nuveen AMT-Free Municipal Income Fund (NEA), and was renamed the Nuveen AMT-Free Quality Municipal Income Fund. For details, see the Press Release and Questions & Answer document.

Objective

The fund's investment objectives are to provide current income exempt from regular federal income tax and the alternative minimum tax applicable to individuals and to enhance portfolio value relative to the municipal bond market by investing in tax-exempt municipal bonds that the fund's investment adviser believes are underrated or undervalued or that represent municipal market sectors that are undervalued.

Highlights

Seeks to provide:

Attractive monthly tax-free income

Portfolio diversification

Attractive after tax total returns

Investment Strategy

The fund invests in municipal securities that are exempt from federal income taxes. The Fund uses leverage. By investment policy, the Fund may invest up to 35% of its managed assets in municipal securities rated at the time of investment BBB and below or judged by the manager to be of comparable quality. However, in connection with its outstanding preferred securities, the Fund has agreed to limit its flexibility to invest in such securities.* Those agreements may be amended in the future.

Featured Literature

Contact Us

Investment, Market, and Price Risk: Closed-end fund shares are subject to investment risk, including the possible loss of the entire principal amount that you invest. Common shares frequently trade at a discount to their NAV. At any point in time, your common shares may be worth less than you paid, even after considering the reinvestment of fund distributions.

Interest Rate Risk: Fixed-income securities such as bonds, preferred, convertible and other debt securities will decline in value if market interest rates rise.

Credit Risk: Debt or preferred securities held by the fund may fail to make dividend or interest payments when due. Investments in securities below investment grade credit quality are predominantly speculative and subject to greater volatility and risk of default. Unrated securities are evaluated by fund managers using industry data and their own analysis processes that may be similar to that of a nationally recognized rating agency; however, such internal ratings are not equivalent to a national agency credit rating. Counterparty credit risk may arise if counterparties fail to meet their obligations, should the fund hold any derivative instruments for either investment exposure or hedging purposes.

Leverage Risk: The fund’s use of leverage may cause higher volatility for the fund’s per share NAV, market price, and distributions. Leverage typically magnifies the total return of the fund’s portfolio, whether that return is positive or negative. Leverage is intended to increase common share net income, but there is no assurance that the fund’s leveraging strategy will be successful. Different forms of leverage, including swaps, may introduce additional credit or interest rate risk. Leverage may also increase a fund’s liquidity risk, as the fund may need to sell securities at inopportune times to stay within fund or regulatory limits.

Inverse Floater Risk: The fund invests in inverse floaters. Due to their leveraged nature, these derivative investments can greatly increase a fund’s exposure to interest rate risk and credit risk, including counter-party credit risk. In addition, investments in inverse floaters involve the risk that the fund could lose more than its original principal investment.

Tax Risk: The tax treatment of fund distributions may be affected by future changes in tax laws and regulations or their interpretation by the Internal Revenue Service or state tax authorities.

Call Risk or Prepayment Risk: Issuers may exercise their option to prepay principal earlier than scheduled, forcing the fund to reinvest in lower-yielding securities.

Low-Quality Bond Risk: The fund concentrates a large portion of its investments in low-quality bonds (sometimes called “junk bonds”), which have greater credit risk and generally are less liquid and have more volatile prices than higher quality securities.

Hedging Risk: The fund may use derivative instruments for hedging purposes, but there is no assurance that the fund’s hedging strategy will be successful. Derivatives may involve a high degree of financial risk, including the risk that the loss on a derivative may be greater than the principal amount invested.

Municipal Bond Market Liquidity Risk: Inventories of municipal bonds held by brokers and dealers have decreased in recent years, either due to broker-dealer choices or to federal banking regulations, reducing their ability to make a market in these securities. This may decrease the fund’s ability to buy or sell bonds, and may increase bond price volatility and trading costs, particularly during periods of economic or market stress. As a result, the fund may be forced to sell a security at a lower price than desired, to sell other securities to raise cash, or to give up an investment opportunity, any of which could have a negative effect on performance. Large block sales could further reduce bond prices and hurt fund performance.

NOTES

* Currently, under agreements related to the funds preferred shares, the Fund must invest at least 80% of its managed assets in municipal securities rated investment grade (Baa/BBB or better) at the time of investment and may not invest more than 10% of its managed assets in municipal securities rated below B-/B3 or of comparable quality.

Income may be subject to state and local income taxes. Capital gains, if any, will be subject to capital gains tax.

†† INCOME ONLY DISTRIBUTIONS

Distributions are sourced entirely from net investment income, unless noted otherwise.
Distribution rates represent the latest declared regular distribution, annualized, relative to the most recent market price and NAV. Special distributions, including special capital gains distributions, are not included in the calculation.

1 Taxable Equivalent Yield

Taxable equivalent yield is the yield or distribution rate needed from a taxable investment to be economically equal to receiving the stated tax-free yield from a municipal bond investment. Please note that the income levels shown in the calculator do not reflect (i) any federal or state limitations on the amounts of allowable itemized deductions, phaseouts of personal or dependent exemption credits or other allowable credits, (ii) any local taxes imposed, or (iii) any alternative minimum taxes or any taxes other than personal income taxes. The user is responsible for selecting the applicable federal and, as applicable, state tax rates. The stated federal tax rates for joint incomes over $250,000 include the 3.8% medicare tax imposed on the net investment income of certain taxpayers with higher incomes. This calculator is for illustrative purposes only and is not intended to represent actual performance, or to predict future performance, of any Nuveen Investments product. Certain taxpayers may find their effective marginal tax rates to be greater than those shown in the calculator. In that case, the taxable equivalent yield may be even higher.

Income may be subject to state and local taxes, as well as the federal alternative minimum tax. There is no assurance that tax rates will remain unchanged; the rates used are believed to be correct for tax year 2016.

There are risks inherent in any investment, including the possible loss of principal. There can be no assurance that fund objectives will be achieved. Closed-end funds frequently trade at a discount to their net asset value.

Past performance is no guarantee of future results.

NOT FDIC INSUREDMAY LOSE VALUENO BANK GUARANTEE

See our privacy policy, terms of use and our business continuity plan summary. The content of this site, including but not limited to the text and images herein and their arrangement are Copyright by Nuveen Investments. Securities offered through Nuveen Securities, LLC, a subsidiary of Nuveen, 333 W. Wacker Drive, Chicago, IL 60606. Nuveen is an operating division of TIAA Global Asset Management. TIAA Global Asset Management provides investment advice and portfolio management services through TIAA and its affiliated registered investment advisers.

Investor line: 1-800-257-8787. Advisor line: 1-800-752-8700.

The information on this web site is intended for U.S. residents only. If you are a non-U.S. resident, please visit www.nuveenglobal.com. The information provided does not constitute a solicitation of an offer to buy, or an offer to sell securities in any jurisdiction to any person to whom it is not lawful to make such an offer.